Fair Rental Value Limitation
Currently, IRS has no written procedures concerning the method or frequency for determining this value. In its Audit Technique Guide for Ministers, the IRS tells its agents that determining the fair rental value of a parsonage “is a question of all facts and circumstances based on the local market . . .” It also suggests…
Donating cash to a church
The IRS has various record-keeping and documentation requirements, depending on the amount of cash you donate to a church. Whenever you make a cash donation to your church, you must retain either a receipt, canceled check or a bank or credit card statement. It’s not necessary for you to send these to the IRS, but…
What Qualifies as Housing Expenses?
Common eligible expenses include mortgage payments (principal and interest); rent payments; real estate taxes; property insurance; utilities (gas, electricity, water, sewer, garbage pickup, local telephone service); appliances and furniture (purchase or rental cost and repairs); remodeling expenses; homeowners’ dues; and pest control. Any expense to maintain and furnish a home. Cleaning services, food, domestic help,…
Health Reimbursement Plans are Back!
On December 13, 2016, President Obama signed the 21st Century Cures Act, which goes into effect on January 1, 2017. This law allows small churches to set up a QSEHRA to contribute toward your employees’ healthcare costs. This plan is now available through our website. Click Here to Order. If your church (with less than 50…
Should the Church Designate a Parsonage Allowance?
If a church provides a parsonage, the church should assume all costs for maintenance and utilities. These costs may be paid directly or the pastor may be given a parsonage allowance sufficient to cover these expenses. In addition to these costs, the church should provide and maintain major appliances in the parsonage. Pastors who live in an unfurnished…
Can The Church Pay My Social Security tax?
Churches are required to pay FICA (Social Security and Medicare) taxes for all non-clergy employees. The IRS considers clergy as dual status employees which are subject to SECA tax for social security purposes. Due to this status, the church cannot pay FICA tax for clergy. Many compensation packages have an extra taxable line item labeled…
Extension season has started
We are always interested in working with new clients. As tax returns continue to arrive in our office daily, they are completed in the order they are received. Our hope would be to complete all the returns in our office by April 18th. However, we know that we’ll need to file extensions for some. If you…
Cell Phone Use/Texting While Driving Policy
Guidance for Churches Providing a church policy regarding cell phone use and texting while driving is important reminder for employees to understand the church policy and state laws. Although the dangers of “distracted driving” are well-documented, many people still engage in the practices of texting or using cell phones while driving. Churches should take steps to discourage these…
Upcoming Important Deadlines
April 18th Deadline: – Deadline to make a 2016 IRA Contribution – This includes your Roth IRA contribution as well. – Contributions to Health Savings Account – Deadline to contribute to your HSA and get a tax deduction for 2016. $3,400 for Singles and $6,750 for Married/Family. – Individual Tax Returns Due – Due date…
Can We Ban Cell Phones from Church Employees?
Churches can be expected to give their undivided attention to the work you pay them to perform, and if that means cell phones need to be turned off or put away, you are entitled to make this request. However, employees should be allowed to use cell phones during their break and meal periods, as this…
